Intuit

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 18.76% in 2017 to 21.41% in 2021.
  • The average EBIT Margin for the period under analysis was 26.7%, with 2018 and 2020 performing the worst and best, respectively.
  • In the current year, Intuit was able to cover its interest liabilities 86 times in the current year- compared to 2017 when it was 45 times.
  • The Asset turnover stood at 0.62 times in 2021 from 1.27 in 2017, implying a low performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Intuit has increased year on year. The revenue increased by 15.20% between 2017 and 2018 and a further 13.05% increase was recorded between 2018 and 2019. There also occurred an increase of 25.45% between 2020 and 2021 (the current period). 
  • Intuit’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.

Liquidity

  • The company’s result in liquidity looks poor, as current ratio/acid test decreased from 2.26:1 to 1.94:1 on the last year. Which implies that the company does not have enough assets to settle its current liabilities.

Capital Structure

  • Intuit is both equity and debt financed.
  • The debt-to-equity (D/E) ratio has been falling year on year. The gearing position of the company appears to be low as it stood at 57% in the current year.

Source: Intuit Annual Report

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